New Zealand Manufacturing Shrinks for 1st Time in 11 Months

The Business NZ Performance of Manufacturing Index in New Zealand increased to 59.7 in June, up from an upwardly revised 51.3 in May, marking the twelfth consecutive month of expansion and well above the long-term average of 52.5. It was the strongest growth in factory activity since July 2021, with new orders being the standout at 64.1 (vs 53.2 in May), pointing to a healthy pipeline of work ahead. Meanwhile, production surged to 59.4 (vs 50.6), while deliveries rose to 57.3 (vs 52.9). Stocks of finished products (56.9 vs 54.3) and employment (55.8 vs 51.4) were also well above the 50.0 mark, an encouraging sign for manufacturing hiring. " There are still real headwinds with the conflict in the Middle East and high fuel prices continuing to be a factor for many respondents, but this month's result reflects a huge positive shift after a long stretch of soft results, which is a very welcome turn," said BusinessNZ’s Director of Advocacy, Catherine Beard.

The Business NZ Performance of Manufacturing Index in New Zealand declined to 49.9 in May, down from a downwardly revised 50.4 in April, marking the first contraction since June 2025 and falling below the long-term average of 52.5. The latest result highlighted that the war in Iran weighed heavily on the index, with the employment sub-index moving into negative territory (49.6 vs 53.2 in April), while production remained stable after expanding in April (50.0 vs 51.4). The contraction was partially offset by finished stocks, which remained in expansion territory (53.8 vs 50.7), while deliveries (51.9 vs 46.8) and new orders (50.1 vs 48.0) both rebounded into expansion territory. "We believe the sector is likely to go through a flat patch during winter but, Middle East willing, we still think the broader economy can pick up some momentum at the tail end of this year, so there is no reason to believe manufacturing will be an exception," BNZ Head of Research, Stephen Toplis, said.

The Business NZ Performance of Manufacturing Index in New Zealand was 50.5 in April, down from a downwardly revised 52.8 in March, marking the softest expansion since last September and falling below the long-term average of 52.5. The latest result showed the sector expanding at a slower pace, highlighting that the Iran war weighed heavily on the index. Three of the five sub-indices remained in expansion territory, led by employment (53.4 vs 51.8 in April), followed by production (51.7 vs 53.4) and finished stocks (50.5 vs 53.8). Contractions were seen in new orders (48.2 vs 55.0) and deliveries (46.5 vs 49.6). " The Performance 1of Manufacturing Index had been remarkably robust, with the headline reading for March down on previous months but still solidly above the breakeven line. However, we feared it was only a matter of time before the wheels started to fall off and, alas, the April survey indicates that time may now have arrived.” BNZ Head of Research, Stephen Toplis, said.